When Drawing a Production Possibilities Frontier, All of the Following

question 140

Multiple Choice

When drawing a production possibilities frontier, all of the following are usually assumed except one.Which is the exception?

• A)The quantity of resources is rapidly growing.
• B)Technology is fixed.
• C)Resources can be shifted between production of the two goods.
• D)The production possibilities frontier is drawn for a particular time period.
• E)Resources are fully and efficiently employed.

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Definitions:

Earned Income Tax Credit

A refundable tax credit for low- to moderate-income working individuals and families, designed to encourage and reward work.

Negative Income Tax

A tax system where people earning below a certain amount receive supplemental pay from the government instead of paying taxes.

Government Intervention

Actions taken by government to influence or regulate economic activity, often to correct market failures and promote welfare.

Negative Income Tax

A system of income support that provides individuals with an income guarantee. If an individual's earnings fall below a certain level, they receive supplemental pay from the government rather than paying taxes.